Evolution Mining has committed to stage two of its Drummond gold joint venture project with Andromeda Metals in northern Queensland.
Having met the stage one expenditure of $2 million within the first year of a scheduled two-year period, Evolution now proceeds to stage two.
Upon spending an additional $4 million over the next two years, Evolution will acquire an 80 per cent interest in the project.
On making the election, Evolution is required to make a further $200,000 cash payment to Andromeda within 10 business days of notification.
These proceeds will be used by Andromeda to advance its Poochera Halloysite-Kaolin project, with the scoping study to be released before the end of the month.
The Drummond project comprises of four tenements located in the Drummond basin, an area considered to be prospective in hosting high grade epithermal gold deposits such as Pajingo, which has produced approximately three million ounces of gold.
Under stage one, Evolution has undertaken an extensive diamond drilling program to test both the Bunyip and South West Limey Dam prospects with the best intercept provided to the company at Bunyip, being three metres at 3.42 grams per tonne.
Evolution has also conducted significant exploration work which included completion of magnetic surveys and further soil geochemistry sampling at both Bunyip and South West Limey Dam.
In addition, regional soil geochemistry and desktop review of a number of other targets across the Drummond project tenement package have been undertaken.